Reliance Jio and Bharti Airtel will not be able to raise tariffs for 5G services during the initial phase of the launch. Low penetration of 5G phones and the inability of some phones to support certain spectrum bands were cited as reasons, according to the report. Financial Express (FE).
Only 8 percent of the 600 million phones currently support 5G, the report added.
Companies can upgrade existing users of existing 4G plans and provide them with access to 5G services, the report added. This is possible because upgrading the network from 4G to 5G does not require changing SIM cards. However, when switching from 3G to 4G, users were required to change SIM cards.
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Data consumption speed in 5G service would be much higher than 4G services. Company executives say this will increase average revenue per user (ARPU) for operators.
The FE According to a report by Counterpoint Research, 5G-enabled phones will contribute about 35 percent of total smartphone sales in the October-December period. In total, 5G phones will reach 85 million, or 14 percent of all phones.
Reliance Industries Chairman Mukesh Ambani said at the Annual General Meeting (AGM 2022) that the company will launch 5G services in major metro cities by Diwali. Bharti Airtel also has a similar timeline, FE said.